JERICHO, WEST BANK // Zuhair Al Manasrah sat in his office where he manages plantations of 20,000 date palms and described the risk he took as a Palestinian investing in agriculture.
"It's difficult to farm anything when you're under occupation," said Mr Al Manasrah, 69, who spent stints as the governor of Bethlehem and Jenin before turning full-time to farming.
Despite the usual Israeli obstacles to nearly all things Palestinian in the West Bank's Jordan Valley, Mr Manasrah was optimistic. He took US$1.5 million (Dh5.51m) in loans from local banks to set up an industrial scale date-farming operation.
Yet seven years later, his company, Nakheel Palestine, is struggling to make money.
Palestinian agriculture in the West Bank has struggled under Israel's 46-year occupation. In the Jordan Valley, farmers say access to water is restricted and demolitions of Palestinian-owned structures are common.
Palestinian leaders envisage the Jordan Valley as the breadbasket of their hoped-for state, but the Palestinian Authority (PA) has little remit over the region. Israel directly administers about 90 per cent of the area and has lavished subsidised water, tax breaks and cheap land on its expanding agricultural settlements to maintain its grip. As a result, the settlers' farms have flourished and the Palestinian farmers cannot compete.
Mr Al Manasrah hopes his company will become the exception. He now exports dates around the world and has grown his company into one of the largest Palestinian-run date producers.
He plans to plant another 16,000 date palms and eventually produce about 2,000 tonnes of dates annually.
"We have markets where we can get good prices for our dates, where there are customers who buy Palestinian dates for a lot of different reasons," said Mr Al Manasrah.
He has been helped by the backing of influential Palestinian investors as well as rising European pressure against Israeli settlements and growing global demand for dates.
He exported about 60 per cent of his crop last year, primarily to buyers in Britain, Indonesia and Turkey.
Still, Nakheel Palestine pales in comparison to its Israeli competitors.
Israel controls about half the global market for Medjool dates, the preferred variety in the Muslim world that is consumed voraciously during Ramadan and other holidays. Of the 25,000 tonnes of dates Israel exported in 2011, nearly half came from Jewish settlements in the Jordan Valley, according to Who Profits, the Israeli watchdog of settlement companies.
The European Union (EU) imports 15 times more goods - primarily agricultural produce - from settlements than it does from Palestinians, according to statistics in a report issued last year by 21 non-government organisations. This despite a West Bank settler population of 300,000 compared to the territory's 2.5 million Palestinians, who have duty-free access to the EU market.
Palestinian farming, meanwhile, has nosedived. Since the Israel-Palestinian Oslo peace accords of the 1990s, agriculture has fallen from more than a quarter of Palestinian GDP to just under 6 per cent, according to Palestinian Authority statistics.
Access to water has been key to the decline. Many farmers are forced to bring it in by trucks. They say Israeli authorities prevent them from drilling deeper wells in the Jordan Valley and regularly demolish Palestinian cisterns in the West Bank.
Located in Israeli-administered areas, three structures in Mr Manasrah's date-palm orchards face Israeli-issued demolition orders. His company is waging an expensive legal battle against the orders.
All this translates into cheaper Israeli-grown dates and, Mr Al Manasrah acknowledges, tougher competition for his company, which still operates at a loss. "We hope this year will start to break even," he said.
Nakheel Palestine is not without its own support.
Its investors include the powerful Padico investment holding group, chaired by Palestinian billionaire Munib Al Masri. Their backing helped the company acquire the expensive equipment required for large-scale date production, including massive cooling facilities and a conveyor belt used to sort good dates from the bad.
Moreover, rising global demand for dates, especially in the Middle East, has helped some Palestinian farmers eke out a profit from the crop, said Christopher Whitman, advocacy coordinator at the Ramallah-based Maan Development Centre.
In Europe and Asia, pro-Palestinian buyers, distributors and boutique markets also help sustain companies such as Nakheel Palestine, Mr Whitman said. "These people are involved in fair-trade issues, people who buy organic fruit, buy goods that are not explicitly exploiting third-world countries, such as lower-class workers," he said.
European governments, for their part, have upped pressure on Israel over its occupation. Britain and Denmark have adopted product-labelling measures that identify whether something has been made in a settlement, and EU foreign ministers last May suggested imposing more measures.
Last year, South Africa's cabinet approved legislation to label settlment goods as coming from "the occupied Palestinian Territories".
Nakheel Palestine has no option other than to export its dates through Israeli ports. Israel controls all Palestinian commercial and passenger crossings. Mr Al Manasrah, a West Bank resident, lacks the permission required to travel with his produce into Israel before it is shipped abroad.
Such restrictions can cause Palestinian-grown fruits and vegetables to spoil before they can be exported, which Mr Al Manasrah said had led Palestinian farmers to turn to farming dates over the past decade. Dates require less water and have a far longer shelf life than the tomatoes, cucumbers and bananas that were once widely cultivated in the West Bank.
"The last option for Palestinian farms is dates, but even now that's become more complicated because of what Israel is doing to us," Mr Al Manasrah said.
But, he added, "there's still hope in the industry".
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
UAE currency: the story behind the money in your pockets
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Infobox
Western Region Asia Cup Qualifier, Al Amerat, Oman
The two finalists advance to the next stage of qualifying, in Malaysia in August
Results
UAE beat Iran by 10 wickets
Kuwait beat Saudi Arabia by eight wickets
Oman beat Bahrain by nine wickets
Qatar beat Maldives by 106 runs
Monday fixtures
UAE v Kuwait, Iran v Saudi Arabia, Oman v Qatar, Maldives v Bahrain
UAE currency: the story behind the money in your pockets
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
England's lowest Test innings
- 45 v Australia in Sydney, January 28, 1887
- 46 v West Indies in Port of Spain, March 25, 1994
- 51 v West Indies in Kingston, February 4, 2009
- 52 v Australia at The Oval, August 14, 1948
- 53 v Australia at Lord's, July 16, 1888
- 58 v New Zealand in Auckland, March 22, 2018
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
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